By Jay Landers
Amid growing public concern about the increasingly automated approaches to parking payments and enforcement, the parking operator and provider of artificial intelligence solutions Metropolis Technologies, Inc., recently agreed to an $8.75 million settlement with the State of Tennessee to resolve its investigation into the company.
Under the terms of the settlement, Metropolis will pay for consumer refunds, litigation costs, and a free parking program, while also implementing certain operational practices intended mainly to reduce consumer confusion regarding pricing.
Prompted by pricing, signage complaints
Announced on January 12 by Tennessee Attorney General (AG) Jonathan Skrmetti, the settlement ends an investigation begun two years ago after the state received “more than one hundred consumer complaints about unclear pricing and inadequate signage at Metropolis parking lots, as well as misleading communications about parking fees and violation notices,” according to a statement released the same day by the AG’s office.
“The investigation revealed that Metropolis misled consumers about its prices with inaccurate signs, charged surprise fees due to technology glitches, made obtaining refunds nearly impossible, and created confusion with notices that looked like government bills,” according to the AG’s statement. “To date, the Office has received over 300 complaints related to Metropolis.”
Metropolis and the State of Tennessee agreed to settle the case “to avoid the expense associated with litigation,” according to the settlement.
“Metropolis looks forward to turning the page on long-past operational issues and continuing to bring forward a set of best-in-class parking standards in Tennessee,” said Nick Rosen-Wachs, vice president of communications for Metropolis, in a written statement provided to Parking Today. “Our agreement with the AG’s office allows us to put those issues to rest once and for all,” he said. “We continue to make operational updates and improvements that will enable us to deliver an even more seamless consumer experience and look forward to serving and investing in Tennessee for years to come.”
What the money goes toward
Under the settlement, Metropolis is required to pay Tennessee a total of $6.5 million, to be disbursed in three equal installments. The first such installment was due January 15, while the second and third are respectively due on or before June 15, 2026, and January 15, 2027.
Consumers who believed they were overcharged by Metropolis between July 1, 2021, and January 6, 2026, will be able to file refund claims with the AG’s office by means of a process that has yet to be established.
As part of what is to become known as the Tennessee Parking Program, Metropolis also must begin providing within three months $2.25 million in credits for free parking sessions for eligible consumers. Open to any drivers with vehicles having Tennessee license plates, the Tennessee Parking Program will provide a promotional code to be redeemed for up to $15 in free parking at Metropolis lots in Nashville, Knoxville, or Memphis. Individual drivers may use the promotional code twice, for a total of $30 in free parking.
Signage, refund requirements
The settlement also includes various requirements that Metropolis must adhere to pertaining to signage. For example, the company must use physical signage at all Tennessee lots displaying the current active rates in a clear and conspicuous manner.
The settlement defines clear and conspicuous to mean “in a larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks.” Signage almost must display a customer support telephone number.
As part of digital platforms, Metropolis must display current active rates that are aligned with rates displayed on the physical signage. When entering a lot that uses license plate recognition (LPR) technology, Metropolis customers are to receive a text message with applicable rates. When extending their stay, customers are to receive a text disclosing current, accurate rate information. The company also must provide drivers a 15-minute grace period to enter and exit with no charge in lots using LPR technology.
In the event of refund or waiver requests, Metropolis must evaluate each request individually. In addition to complying with all state and local booting regulations, the company also must not imply “affiliation with any municipality or government agency via electronic or mailed notices” to consumers, according to the settlement.
Separate litigation
Metropolis remains a party to other litigation, including a separate, ongoing case in Tennessee. Filed in June 2024 in U.S. District Court for the Middle District of Tennessee, the class action lawsuit Alhindi v. Metropolis Technologies, Inc. alleges that the company’s practice of mailing violation notices runs afoul of the Driver’s Privacy Protection Act (DPPA), a federal law regulating the disclosure and use of personal information contained in motor vehicle records.
In September, Metropolis scored a victory in a Texas case known as Todd Frankfort, et al., v. Metropolis Technologies, Inc. As part of their case that they originally filed with the U.S. District Court for the Northern District of Texas in September 2024, the plaintiffs argued that the company’s violation fine practices violate the Federal Fair Debt Collection Practices Act, the Texas Fair Debt Collection Practices Act, and the Texas Deceptive Trade Practices Act.
On September 16, 2025, U.S. District Judge Sam A. Lindsay dismissed the case. The plaintiffs have appealed the decision.
JAY LANDERS is the editor-in-chief of Parking Today. He can be reached at [email protected].
